Human Rights Due Diligence

Human Rights Due Diligence

Building on İşbank Human Rights and Human Resources Policy, İşbank sets out its responsibilities and guiding principles regarding human rights and human resources practices. In line with these principles, the Bank aims to uphold the responsibilities and principles it has adopted across its employees, suppliers, customers, business partners, and all relevant stakeholders in the value chain.

The Bank endeavors to align its operations with the United Nations Guiding Principles on Business and Human Rights, known as the “Protect, Respect and Remedy" Framework. It regularly assesses the actual and potential human rights impacts of its activities, takes necessary measures to prevent and mitigate negative impacts, and provides grievance mechanisms through which affected parties can raise concerns. In this context, risks on human rights are taken into consideration in matters such as working conditions, value chain and establishing new business relationships

Human rights risk is defined as the likelihood that an institution's operations, business relationships, or supply chain may give rise to adverse impacts on the fundamental rights and freedoms of its stakeholders.

The Bank regularly analyzes human rights risks across its operations, products and services, and supply chain. Human rights criteria are integrated into investment, credit allocation, and supplier selection processes, while monitoring and audit mechanisms are applied in high-risk areas.

As part of its human rights due diligence process, the Bank conducts separate analyses of its operations, customers, supply chain, and communities in order to better manage the potential impacts of its activities.

• * In 2025, within the scope of employee satisfaction and engagement, a survey with a participation rate of 84% of Bank employees revealed no findings of human rights violations in relation to human rights risk.
• ** In 2025, all complaints received through the Customer Relations Platform were reported to senior management, and none of the evaluated complaints resulted in any penalties due to non-compliance with customer information regulations.
• *** In 2025, a total of 77 suppliers, constituting 54% of total purchasing expenditure, participated in the survey which was sent to suppliers covering 69% of total purchasing expenditure, no human rights risks were identified in the responses assessed.
  
  
  

Oversight and monitoring of human rights violations within the Bank are carried out by the Board of Inspectors, which operates under the authority of the Board of Directors. In this context, preliminary reviews, examinations, and investigations are conducted regarding suspected internal cases. In addition, the management of customer complaints is audited by the Board of Inspectors, complaints received through various channels, including the Ethics Hotline, which may involve human rights issues, are examined on a case-by-case basis. The confidentiality of the reporting process is ensured, and unless the reporting individual requests otherwise, their identity is kept anonymous, while no person is subjected to any disadvantage solely for making a notification.

The Bank aims to conduct its activities in compliance with laws, applicable regulations, and its own strategies, policies, principles, and objectives. In order to mitigate human rights risks, risk assessment and prevention processes are applied across the supply chain and credit portfolio. Within its own operations, the Bank observes equal opportunity, gender equality and non-discrimination principles from recruitment onwards. Candidates are assessed for their suitability for the role and alignment with a fair and respectful workplace culture. Employees receive training on human rights, business ethics, gender equality and the prevention of discrimination and harassment, and are informed of applicable disciplinary sanctions.

In cases where findings are identified through audits, improvement plans are prepared for the relevant operational areas. Relevant business units implement these plans, and progress is monitored regularly. Findings are closed only after completion of the required measures has been verified. In the event of confirmed violations, the Bank activates and follows up on remediation mechanisms, including improvement of working conditions and process enhancements, to restore the rights of affected individuals.

Confirmed human rights violations may also result in disciplinary sanctions under the Bank's internal regulations and Collective Labour Agreement, depending on the nature and extent of their impact. These may include written warnings for errors and shortcomings in duties or conduct, reprimands that do not prevent promotion, and severe reprimands that postpone promotion for two years.

In 2025, 16 complaints relating to five different topics were received through the Ethics Hotline. Of these, four complaints - three concerning customer confidentiality and one concerning corruption and bribery- were assessed as relevant to human rights issues. These complaints were reviewed, and no irregularities were identified. Across all relevant reviews, examinations and investigations conducted during the year, no human rights violations caused or contributed to by the Bank were identified; accordingly, no remediation measures were required in relation to those reviews, examinations and investigations. Activities in this context focus on assessing the effectiveness of risk identification and developing necessary controls within the first and second lines of defence.